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Mandatory use of taxpayer identification number

Taxpayer identification number (TIN) is a unique number issued to a business or individual for tax purposes. After a new business registers with the Corporate Affairs Commission, the regulatory authority will generate TIN on the portal.A taxpayer can also verify TIN details and print a TIN certificate from the TIN Verification Portal. Section 3 of the Finance Act 2019 replaced the provisions of Section 10 of the Companies Income Tax Act (CITA). As a result, TIN is now compulsory for all businesses. The Federal Inland Revenue Service (FIRS) public notice also highlights the mandatory use of taxpayer identification number (TIN).

Going forward, every company must display its TIN on all business transactions with other businesses and individuals as well as on all documents and correspondence with revenue authorities. Companies must also provide their TIN on all correspondence with Ministries and Government agencies. Banks or other financial institutions in Nigeria must collect the TIN from all companies that want to open or continue to operate a corporate bank account.

Section 28 of the Finance Act further introduced a provision in Section 49(1) of the Personal Income Tax Act (PITA). Similar to the mandatory TIN for companies, the Finance Act also states a new TIN requirement for individuals. Banks or other financial institutions in Nigeria must collect TIN from individuals who want to open or continue to operate a bank account for business purposes. The emphasis here is on persons that intend to use a bank account for business purposes.

Next steps for businesses and financial institutions

All companies must register for tax, obtain TIN and display the number on all documents relating to official transactions.

All banks and other financial institutions must request TIN as a precondition for opening new accounts for companies and other businesses.

Every company or business must provide their TIN to the relevant financial institution not later than 12 April 2020, to update their existing records for accounts opened before 13 January 2020.